In the latest edition of Bonus Round, Wedbush Morgan analyst Michael Pachter says that Sony and Microsoft will likely slash the price of their last generation consoles in February. Pachter went on to claim that publishers have threatened to stop supporting the last generation consoles if platform holders didn't start cutting the price of their systems.

"I think the publishers are going to threaten the manufacturers, and they’re going to say ‘cut the price of the PS3 and the Xbox 360, now’," said Pachter. "So my bet is [a] February, price cut happening, because I actually think the publishers are gonna threaten to not support PS3 and 360 this holiday if they don’t see a price cut quick."

Pachter went on to say that both platform owners could slash the price of the consoles substantially and still make a serious profit.

"The good news is Microsoft can cut to $199 in a heart beat and won’t lose any money. I mean it’ll cost their profit," said Pachter. "And Sony can do the same, they both have manufacturing down there, and I mean that’s great for consumers."

"There are still a hundred million Wii owners out there, probably three quarters of whom have never considered owning a PS3 or a Xbox 360," he added. "That’s a good opportunity for ten million or more of them to trade up."